Texas Roadhouse Inc (TXRH)
Number of days of payables
| Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | ||
|---|---|---|---|---|---|---|
| Payables turnover | 31.57 | 33.96 | 32.15 | 15.78 | 18.19 | |
| Number of days of payables | days | 11.56 | 10.75 | 11.35 | 23.12 | 20.07 |
December 31, 2023 calculation
Number of days of payables = 365 ÷ Payables turnover
= 365 ÷ 31.57
= 11.56
Number of days of payables is a financial ratio that measures the average number of days it takes for a company, in this case, Texas Roadhouse Inc, to pay its suppliers for goods and services purchased on credit. A lower number of days of payables indicates that the company is paying its suppliers more quickly.
From the data provided, we can observe a trend in the number of days of payables for Texas Roadhouse Inc over the past five years. In 2023, the number of days of payables increased slightly to 11.56 days from 10.75 days in 2022. This indicates that the company took slightly longer to pay its suppliers in 2023 compared to the previous year.
In 2021, there was a slight decrease in the number of days of payables to 11.35 days from 23.12 days in 2020. This significant decrease suggests that Texas Roadhouse Inc improved its payables management by paying its suppliers more promptly in 2021.
Furthermore, in 2019, the number of days of payables was 20.07 days, indicating that the company took longer to settle its payables in that year compared to the more recent years.
Overall, the trend in the number of days of payables for Texas Roadhouse Inc shows some variability over the past five years, with fluctuations in payment times to suppliers. Monitoring this ratio can provide insights into the company's liquidity management and relationships with its suppliers.
Peer comparison
Dec 31, 2023